Question: 2, To create a butterfly spread, one needs to long 1 put with low K, short 1 put with middle K, and long 1 put

2, To create a butterfly spread, one needs to long 1 put with low K, short 1 put with middle K, and long 1 put with high K. Group of answer choices

True False

3. Mary speculates that ABC stock price will decrease. Which action should she take now?

Group of answer choices

Buy a call and a put with the same strike price.

Buy one low strike price call + Buy one high strike price call + Short two middle strike call.

Buy a call option with a low strike price and write a call with a high strike price.

Buy a put option with a high strike price and write a put with a low strike price.

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